RIL Stocks Tank: Reliance Industries (RIL) shares are seeing a huge decline today. Shares in the business fell more than 5 percent and have weakened to the level of 1940 below the 1950 rupees. This fall in the stock comes after the second-quarter results of RIL. The stock has lost more than Rs 400 in the last 1.5 months. In fact, RIL’s profit fell 15 per cent year-on-year to Rs 9567 crore. Although it is better than estimates, but the refining business remains weak. Which has affected the sentiment of investors. Expert says that the company’s balance sheet is very strong. The debt is over. Further, retail and telecom businesses are expected to remain strong. Know what is the opinion of veterans on the stock… ..
What do the giants have to say
According to brokerage house Motilal Oswal, the refining margin environment remains weak. However, in the September quarter, there has been a recovery in the revenue of Reliance Consumer and the B2B business. Due to this, strong growth is expected in retail business and telecom business. Anyway, RIL’s focus is more on retail and digital than energy business. Through these, the company can further increase its market share. However, after both these segments, the company is going to focus on the oil-to-chemical business, which has been indicated earlier. In such a situation, there is no further concern about the stock. You can get better returns from here after the fall. Motilal Oswal has advised investing in the stock with a target of Rs 2240.
Brokerage house Sharekhan says that lower refining margins could create some pressure. But the company’s balance sheet is very strong. Recently, a lot of investment has come in the company’s retail and live platforms. Further, the market share of Reliance Retail in the Indian retail space seems to be increasing, which is going to support RIL. The company is in a position that it can meet the challenges well. Sharekhan has advised investment with a target of Rs 2400.
Although brokerage house CITI has given neutral rating in the stock. According to the brokerage, the refining business is under pressure. This is the main business of the company. This may cause a decline of 3-10 per cent in EBITDA for FY21-23e. Jio’s business is predictable and retail business is also normal. The brokerage has a target of Rs 2210 for the stock.
What to say about the company
RIL Chairman and Managing Director Mukesh Ambani said that we have performed better financially and financially than in the previous quarter. There has been a recovery in the petrochemical and retail segments. The digital service business has shown steady growth. There is a sharp recovery in domestic demand in our O2C business. In the case of most products, the demand has reached the previous level of Covid-19.
Results at a glance
RIL’s profit fell 15 per cent year-on-year to Rs 9567 crore. The company’s profits were higher than analysts’ estimates. Reliance Jio’s profit grew by 185 per cent to Rs 2,844 crore on an annual basis. Jio’s ARPU has increased from Rs 140.3 to Rs 145. Reliance Retail’s revenue grew 29.7 per cent sequentially to Rs 36,566 crore. The company’s revenue was affected due to the store’s functioning being disrupted. The revenue of the Petchem segment grew by 17.8 percent on a quarterly basis. EBIDTA margin increased 2.5 percent on a quarterly basis.
(Note: We have given information here based on the quarterly results of the company and the opinion of the brokerage house on the stock. See the opinion of experts before investing, given the market risk.)